Services lift HCM City growth

A reperesentative in HCM City learns about online social insurance transactions. Information and communications is one of the fastest growing sectors in the city. — VNA/VNS Photo Phuong Vy

HCM CITY (VNS) — The service industry accounts for nearly 60 per cent of HCM City's economy now, exceeding the target of 57 per cent - and four percentage points higher than in 2010.

Investment in the sector has risen by 73.2 per cent since 2010.

According to the municipal People's Committee, from 2011- 15 the sector's average revenue grew by 11.2 per cent a year and the aim is to increase the proportion of high value-added services.

Finance , banking, insurance and trade, transportation and logistics account for more than 34 per cent of the city's economic output.

Science and technology consultancy is the fastest growing service, achieving annual growth of nearly 17 per cent in recent years compared with 5.4 per cent in 2006 –10.

The sector accounts for 9.5 per cent of total services turnover thanks to intensive efforts by the city to establish research – production – market links and create programmes to bolster domestic research, design, manufacture and transfer capability to replace import of technology and products.

The service that is growing at the second fastest clip is information and communications technology (16.5 per cent). It accounts for 5.8 per cent of services sales.

The city has firmly established its leading position and brand in software programming and outsourcing in the country.

In third place is healthcare, which is growing at a yearly rate of 14.8 per cent, and makes up 5.7 per cent of the services sector.

Transport – ports – logistics ranks fourth in growth (around 13 per cent) but is the third biggest service segment — accounting for 15.9 per cent of revenues — benefiting greatly from large investment in infrastructure and many new key highways. — VNS